Lending Insider Drops Bombshell Info About Mortgage Rates
Summary
➡ Banks often charge extra fees, known as points, when you take out a mortgage. These points are used as a safety net for the bank in case you refinance or default on your loan. However, during times when the Federal Reserve lowers interest rates, these points can disappear. Understanding this cycle can help you save money when taking out a mortgage.
Transcript
All right When I say lending insider this person has been in the mortgage industry for 40 years has seen multiple real estate cycles more multiple rate cycles and At the heyday his own company was getting 3,000 new calls for mortgages a month. It’s a very large company. He scaled back his operations. I Met him through the channel vetted him He knows a lot of stuff and we think very similar when it comes to putting mortgages together and buying properties with little to no money down and he shared this This is an exact this is I’m gonna read the exact email keeping everybody’s information out of it that he read He wrote to someone just now.
Okay, this is someone that wants to buy a house right now under a hundred under six hundred thousand dollars Okay, so that’s the hot price point all around the country right now because that’s really the peak of what people can afford with today’s rates But we’re gonna expose something in the points realm that is going on right now That is about to go away and it’s gonna show I’m gonna show you how to save thousands of dollars. Also, I’m gonna plug it Three days left for the mortgage master course of the pre-filming discount after 72 hours from now Or I think it’s Monday at noon.
It expires never gonna be that price again. Okay links down below So here’s the email You are all set to make an offer if this is the property for you. I Did a pre-approval letter Around six hundred thousand dollars Purchase price as in the application. I’m wanting to keep all the necessary information out to keep people’s information private If you and your agent wish to start lower than just above full list price Let me know and the original offer that let me know the original offer price you prefer and I will adjust the letter accordingly You may also want to send me your realtors contact info and all that stuff I will I also priced alone at a zero point rate of seven point one two five and He put in a copy of the Fannie Mae automated approval letter below and I want people to understand the difference between a pre-approval letter And underwriting totally different scenarios.
Okay pre-approval just gets you a foot in the door But most seasoned real estate investors like myself and seasoned real estate agents understand that those letters Don’t hold up a whole lot of weight in an ever-changing dynamic environment like we are in today when banks are having problems they’re going risk off and We’re gonna explain that in the points in just a second and an underwriter can price The risk of a loan or a borrower completely different than all of the information that the borrower Gave to the lender. Okay in the beginning.
All right If you’re if you’re tracking where I’m going with this type one if you don’t understand and I’m losing a type two So I can bring you the best information in this. All right Unfortunately, the letter the email goes on the agencies that publish the weekly rate surveys have gone way of dare I say fake news or Maybe that is extreme They are definitely leaning more towards propaganda than facts as they leave the painful part of their reporting out of these weekly reports each week Let me stop and say what he’s referring to is the media keeps going Mortage rates dive or drop below 7% for the first time I did a video about that, right? And the reason why is because they’re wanting to pull on the emotions of people and get them down to try and buy a house But there’s a secret coming here it is Unfortunately, the agencies that publish the weekly rate surveys have gone the way of dare I say fake news Sorry, I already said that NBA or the Mortgage Bankers Association Weekly survey that came out Wednesday was showing conventional 30-year mortgages at an average rate of 7.02 percent with 0.65 Points.
Okay 0.65 points. However on Thursday and not to be outdone Freddie Mac Got everyone excited telling everyone that rates were below 7% at six point nine five percent But that was including Point nine points almost a full percentage point So now I want to stop right there and show you the ugly truth of the lending industry right now Those published rates even though you have stellar credit right now and A good job You’re gonna be paying almost one point. So if you pay if you’re your loan is gonna be for $500,000 Just to get the loan before it closes.
You have to pay your lender $5,000 one percentage point or point nine. You could do the math off the top of head. I’m live I don’t do that that fast That’s money. That’s never coming back to you ever And I’m gonna explain why the banks are doing this and how you’re about to save a crap ton of money. Okay, so He says this and this is this is my insider and how he talks to his clients. Okay, this is the direct email now here is the pain all in caps on your proposed loan amount of I’m gonna change the numbers $500,000 the point six five points Equates to let’s say I’m gonna I’m rounding up.
I’m live $3,400 at closing extra and at point nine percent It’s around $4,500 again. I’m just or it’s more than way more than that. Sorry Sorry, I’m going live. I didn’t I just got this email and I wanted to get out to you Funny how the press thinks it’s okay to hide these little nearly four to five thousand dollars in additional costs from you the consumer Tell us insiders been watching the economic ninja. He writes stellar. I couldn’t write this good This is just an email to his client now until we get an executed contract and are ready to lock in a rate Hey see dog.
Thank you so much for the super chat. Everyone say hi to see dog He’s been here since like Subscriber five. I don’t actually I’m making that up. I don’t remember it. See dog. Let us know Now until we get an executed contract and are ready to lock in a rate We will not be committing you to any extra fees or points at closing until We look at the cost versus the time to recover taking into account The time before rates may drop and present a refinance opportunity. Hopefully that makes sense But call me if you have any questions So now this is where you’re about to save a ton of money type 3 if you want to save a ton of money I mean, I’m not joking like There are so few people out there that understand how to use banks money with very little of your money or zero money To make a lot of money.
Alright, no one’s type 3. So I guess I’m not gonna is there any threes. Nobody wants to save money Maybe we’re on a delay. I’m just gonna go ahead and tell you. Alright BT says it. This is how you save money When banks are finding risk in the market They’re going to start charging you points and this is why when interest rates rise Which also brings the bond rates up which also brings mortgage rates up Banks know that people are gonna find themselves in the hurt locker All right. So here we go.
Now we’re gonna say hey, hey Neil, how you doing? Thank you so much So what they start doing is instead of giving out free loans, you know They have their average fees and things like that You’ve got your escrow fees and all that kind of stuff, you know, your appraisal fees. They start charging you points That’s a fee for them giving you the money Because they are afraid because rates are rising the two things are gonna happen Either the borrower is gonna go why did I get into this loan? My broker tried to talk me into it and say don’t worry, you know marry the house date the rate That’s insane the most stoop.
That is the dumbest advice you could ever get Alright, that is the dumbest advice a real estate aid a bad real estate agent or a bad social media personality Dave Ramsey We’ll tell you that okay, that is wrong. We want to get into a deal that makes sense right away You don’t sit there with okay. I got the house. Okay, I’m just gonna press on and make those super high payments Right away for a while and then as soon as I could refinance, I’m gonna refinance Well, the bank knows that as rates are going up They’re like that borrower is gonna be looking for any excuse to save money and refinance.
Well if they refinance Within six months of us the bank the lender giving them the money we lose our commission. That’s the deal Type four if you know what I’m talking about many people in the industry don’t even understand how this works So what happens is they’ve got to give back and if a large-scale lender starts losing a lot of these deals and in six months They have to pay back their money. So they charge you a point That money goes into a fund to where they know we can cover this if the person refinances Now another thing that happens and this is a risk on scenario right now When the bank knows they are giving money to people that really can’t afford this and they’re pushing it with their debt to income limits Their debt to equity all these ratios start looking a little weird They go okay this person even though we’re giving them the money and we got to qualify them as a qualified person we know there’s risk here and We’re gonna go get our money first Because if we have to pay someone because either they’re foreclosing or slow paying or something a year down the road We need to be ready to cover our butts.
So not only are they forcing you into PMI They’re going to they’re gonna charge you points, right? When the media comes out with all these great things mortgage rates dropped I told you it’s not gonna matter especially I want you to understand this if the Fed lowers which I believe they’re going to a Couple different times 25 basis points pop. It’s not gonna matter at all to the industry The reason why is because think about your upfront cost that you’re going to have to pay in points Because the banks not only see you as a risk But see the economy and the housing market as a hole in the risk, so they’re gonna charge you money think about right now if You had to pay a point and these people that this person that we’re talking about has stellar credit and a good job Thank you so much Bradley for the super chat.
So now you think about this You’ve got a borrower is a prime borrower But because they don’t understand the situation that they’re in And and and I wish I could share with you some specifics because this person is a prime prime borrower very smart with their money But they’re in a situation where they know they’re gonna be charged points Well points actually completely disappear during one amazing cycle. You’re not gonna hear this from a real estate agent or even most brokers Because they don’t understand how this works is they’re always working because right now it is very hard to pay zero points and get a good Like I showed you in the beginning of this email He said I priced you at seven point one two five at zero points So then the bank knows all right, we’re gonna forego the points You’re gonna pay a ton of interest compared to a little bit lower Because what they want to do is they want you to pay the points and they give you a lower rate You want to know why because there’s a time buffer in between as rates are going up and they dip a little bit if they don’t You know well below what you just paid points on and you’re you’re paying let’s say that six point nine five percent You’re not gonna refinance that loan So that’s their insurance, right? But if you don’t want to pay their insurance Not PMI I’m talking about the insurance of points that they put in their pocket and they walk away with you never get that money back They say we’re gonna charge you seven point one two five knowing just like a casino knows When you hit that first jackpot You’re more than likely to give back a certain percentage because you’re just gone one more to run more All I need is one more role and I’m gonna be rich and that’s what borrowers do See when the Fed starts dropping rates aggressively Do you know what goes away as far as an underwriter or you know? Let’s say the c-suite execs look at for a bank or a lending institution What goes away is the risk that you’re gonna refinance your loan Anytime soon because you just got a great rate and you’re just sort of happy fat dumb and happy It gets really scary.
And so rates points go away during those times, especially because During times of lowering rate of Fed rate lowering cycle It’s because things are really really bad people are in trouble and people are losing jobs So they’re not getting exactly the salt of the earth when it comes to prime borrowers looking for mortgages So now that information alone will save you a lot of money when you start to look at the big picture and you say I See that the media is manipulating this data. They’re not telling me about the points They’re not telling me how much closing costs are right now They’re just bragging and getting me to bank rate and and type 5 if you’ve ever done this go to a company like Bankrate and they’re a search engine and you say you Sadly give them your phone number or an email address and say I’m just looking to get a quote for a mortgage rate and the next Day 25 mortgage lenders are busting down your door trying to get your business That it’s a scary thing Well, once you know how these work, you know how to move in and out of these cycles and you go, you know What I’m gonna sit back a little bit Be ready and not paste stupid stupid fees Or if I’m gonna go and get a loan, I’m not gonna put Five to ten thousand dollars in points I’ll pay the higher rate pay zero points and yeah, I’m paying two or three hundred dollars more a month Well, you divide that monthly increase into ten thousand dollars in points and see how long it takes you to recoup that You see once you start to think like an investor you start to save lots and lots of money sometimes by going through with the deal and Navigating through a deal and not paying these excessive fees or you turn around say, you know what? I’m gonna sit back and wait That’s what I’m teaching people.
That’s what I put out in mortgage master and the mortgage master 2.0 series for investors Do you want it? There’s 72 hours left of that sale once it’s gone It’s done never selling it for that price again Because I do understand that once you put a little skin in the game and you do some studying You’re gonna save a lot of money It means you’re gonna make a lot of money. It means you’re gonna be successful and all the other people that laugh Bet against us I dare you hope you got something out of this.
Thank you so much for watching the economic ninja is out
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